Jan Feb 2013 CALSTART Current

CALSTART Celebrates 20 Years...Then Marches Ahead

US-China Summit Connects Industry Round the World

Just a few short weeks ago, nearly 200 people gathered to celebrate CALSTART’s 20th anniversary, the culmination of two decades of working to improve air quality, create jobs and enhance national security by building a robust clean transportation technology industry.

More than 120 attendees from leading US and Chinese clean truck and bus

Events Calendar

January 30, 2013 HTUF: New Directions Webinar www.htuf.org February 20, 2013 It Takes an Industry: Working Together to Accelerate the High Efficiency Truck Market Workshop www.htuf.org

At the event, four people who have played an instrumental role in Deputy Chief of Mission in the US Embassy in China, Robert Wang addresses the Summit

technology companies together with representatives from key agencies of both governments took part in the first US–China Clean Truck and Bus Summit, October 31-November 1, in Beijing.

February 25-27, 2013 ARPA-E Energy Innovation Summit Washington, DC www.ARPAE-Summit.com

(US-China, continued on Pg. 4) John Boesel, President and CEO, CALSTART, addresses the audience at CALSTART's 20th Anniversary Luncheon

CALSTART’s first 20 years were honored with the Blue Sky Legacy Award, including Lon Bell, Ph.D., President of BSST LLC, retired; California U.S. Senator Barbara Boxer; Congressman Jerry Lewis, 41st Congressional District of Southern California; and Michael R. Peevey, President of the California Public Utilities Commission.

(Celebration, continued on Pg. 4)

Keynote Speakers Announced Keynote speakers at the Green Truck Summit 2013, March 5-6, include Altec CEO Lee Styslinger and Dr. Michael Pacheco, Associate Laboratory Director for Market Transformation and Deployment at the National Renewable Energy Laboratory. (Green, continued, Pg. 4)

March 5-6, 2013 Green Truck Summit Indianapolis, IN Contact: Susan Romeo 626-744-5686 or sromeo@calstart.org

In this issue CALSTART Celebrates, Then Marches On

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Show Me the Money

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US-China Summit Connects Industry Worldwide P.1

Member Spotlight: Quallion Powering Life P.3

Green Truck Summit Keynoters Announced

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American Fuel Cell Bus Project

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AVL and Achates Win Contract with US Army

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California and National Policy

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March 26, 2013 CalHEAT Third Annual Forum Sacramento, CA www.calheat.org J a n u a r y / Fe b r u a r y 2 0 1 3

US Army Selects AVL Powertrain Engineering and Achates Power to Develop Next-Generation Combat Engine The US Army Tank Automotive Research, Development and Engineering Center (TARDEC) recently awarded two CALSTART member companies -- Achates Power and AVL Powertrain Engineering – a contract worth $4.9 million for the design and construction of the Next -Generation Combat Engine. To serve a wide range of U.S. combat and tactical vehicles, the engine will deliver superior fuel efficiency, high power density and low heat rejection and will be multi-fuel capable.

AVL proposed an engine based on the Achates Power opposedpiston, twostroke technology, which includes more than 1,000 unique innovations covered by patents and patent applications. When benchmarked against leading, conventional diesel engines, the Achates Power engine demonstrates lower cycle average brakespecific fuel consumption, similar engine-out emissions levels, less than 0.1 percent fuel-specific oil consumption, and reduced weight and complexity .

“We have the utmost confidence that we will meet TARDEC’s program objectives,” said David Johnson, CEO, Achates Power. “Over the next few years, we look forward to collaborating with AVL on the final design of this Next-Generation Combat Engine.”

For more information, visit www.achatespower.com or www.avl.com/pte.

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Show Me the Money...

California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) Receive up to $65,000 for the purchase of hybrid and plug-in trucks and buses. Receive up to an additional $30,000 per vehicle in the San Joaquin Valley. Contact: www.californiahvip.org or call 888-457-4847.

Renewable Natural Gas Transportation Fuel Production Systems with Value Added Co-Products/ Benefits $2.45M (up to five projects) grant solicitation from CEC’s PIER Transportation Program for projects in the area of renewable natural gas (RNG) transportation fuels. www.energy.ca.gov/contracts/pier.html#PON-12506. Deadline: February 1, 2013 National Science Foundation $9.2M in awards for research and education that will enable innovative processes for the sustainable production of electricity and transportation fuels. www.nsf.gov/funding/pgm_summ.jsp? pims_id=501026. Deadline: February 19, 2013 More funding opportunities are available at www.calstart.org.

CALSTART's High-Efficiency Truck Users Forum kicks -off the new year with a fresh focus and new opportunities for stakeholder engagement. There will be several program changes and additions throughout 2013 and we invite you to join us to learn more about what these changes can do for the industry. Join us January 30 at the HTUF: New Directions Webinar.

To register, go to www.htuf.org.

Quallion: Powering Life.

CALSTART member, Quallion LLC, was founded in 1998, with a mission to develop and manufacture “QUALity Lithium ION” power sources for unique and challenging applications. While the original focus was on medical battery innovations, Quallion has quickly and successfully expanded into military, aerospace and vehicular battery technologies.

Quallion’s innovative Matrix™ Module battery solutions are adaptable for any vehicle system with significant energy storage needs. Whether for hybridelectric, plug-in electric or electric vehicles, Quallion has a module ideally suited for each application.

Recently, the California Energy Commission’s (CEC’s) Alternative and Renewable Fuel and Vehicle Technology Program announced an award of more than $2.2 million to Quallion to help expand its manufacturing capacity at its facilities based in Sylmar, California. The funds will also be used to integrate advanced battery management system (BMS) electronics, improving the performance of the lithium ion batteries used in electric vehicles. Prior to this award, the CEC granted Quallion $6 million to produce higher performing large scale Li-ion battery modules and make them more affordable.

Quallion’s expertise in lithium ion chemistry has resulted in an intellectual portfolio of patented technologies that give their batteries—and their customers—a competitive advantage. Just one example is the patented Zero-Volt technology, which enables a lithium ion battery to be completely discharged to an inert state, stored in this condition for an extended period, and then recharged without any permanent damage to the battery or reduction in capacity or performance. Applied to electric vehicles, this technology can enhance the safety of first responders and auto technicians, reduce warranty costs of replacing batteries that are destroyed as a safety precaution and enable long-term storage and shipping of vehicles with batteries in an inert state, eliminating the risk of fire or explosions.

Quallion has a broad and deep understanding of lithium ion chemistry. All products undergo rigorous in-process checks and inspections using state-of-the-art technology and proprietary processes in micro-leak detection and electrical testing prior to receiving the final quality seal of approval. As to thermal management, specialized packaging techniques combined with SaFE-LYTE™ technology enable Quallion’s batteries to pass even the severest test environments. Active cooling designs also allow for long-term operation of the battery pack with nominal maintenance.

For more information, email info@quallion.com or call 818-833-2000.

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(US-China, continued from Pg. 1)

CALSTART Board of Directors

The Summit is a first of its kind event to link US and Chinese companies specifically in clean fuels and technology for medium- and heavy-duty commercial vehicles, and is a key component of CALSTART’s overall U.S.-China Clean Truck and Bus Technology Forum, supported in part by the US Department of Commerce’s International Trade Administration.

The Deputy Chief of Mission in the US Embassy in China, Robert Wang, said that he hopes “that the American and Chinese attendees and sponsors will not only expand Lon E. Bell Ph.D., BSST their own business opportunities, but continue contributing to the extended LLC (Retired) cooperation by our two nations as we roll out the future of clean technology John Boesel, together.”

CALSTART “Via the Summit we are raising the profile of U.S. companies and their capabilities and Jonathan E. Burke, introducing them directly to leading Chinese truck and bus companies looking for Westport new technology,” said John Boesel, President and CEO of CALSTART. “We seek a John Formisano, win-win for US and Chinese firms.” To find out more, go to www.chinacleantruck.org.

FedEx Express (Retired) Michael Hance, UPS (Celebration, continued from Pg. 1) Doug Kim, Southern Edison International was the lead California Edison sponsor of the event, with W. Brian Olson, significant funding also donated Quantum

by BAE Systems and Sempra Puon Penn, Wells Utilities/Southern California Gas Fargo Company. Additional funders Dipender Saluja, included American Lung Capricorn Association in California, Bay Area Investment Group Air Quality Management District, Ravi Shanker, Dow Eaton Corporation, FedEx Express, Kokam General Motors, Hino Motors, Paul Smith, New Flyer Pacific Gas & Electric, US Hybrid, Crowd gathers at CALSTART's 20th Anniversary Luncheon and Westport Innovations. 2013 Hal D. Snyder, San Diego Gas & Electric marks the beginning of the march toward another twenty years of accelerating the and Southern growth of the industry.

California Gas Company (Green, continued from Pg. 1) George Survant, Time Warner Cable (Chair) Following the 1 1/2 day Green Truck Summit is the Work Truck Show, featuring the CALSTART Clean Tech and Fuels Pavilion, the one-stop location for companies interest Steve Trichka, BAE in clean technologies. The Show, including hundreds of exhibits of commercial Systems vehicle OEMs and suppliers, runs from March 6 to March 8.

Jane Warner, American Lung Also part of the Green Truck Summit and Work Truck Show is the Green Truck Ride Association in and Drive, providing an opportunity for fleets to kick the tires and get behind the California (Vice wheel of vehicles using clean technologies and fuels.

Chair) Bill A. Zobel, Trillium Register today to be part of the action in Indy! Go to the Events section at www.calstart.org or contact Susan Romeo at sromeo@calstart.org.

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Success: American Fuel Cell Bus Project CALSTART is pleased to announce a very successful first year for the American Fuel Cell Bus Project (AFCB). The project “The American Fuel Cell Bus team is meeting their is the first hydrogen bus of goal – build a fuel cell its kind that can apply for bus that both meets FTA capital funding,” says the Federal Transit Fred Silver, Vice President of Administration’s CALSTART. “This will lead to (FTA’s) Buy-American more rapid adoption of this Standards, as well as bus on a national scale.” contributes to the development of lower cost fuel cell buses, making them more readily commercialized.

Federal legislation provided the FTA funding to administer the National Fuel Cell Bus Program, an

or less. The supplier team and CALSTART member SunLine Transit Agency are demonstrating a fuel cell bus efficiency that exceeds 8 miles per diesel gallon equivalent.

The AFCB is now completing the first year in-service operations, using an improved version of CALSTART member Ballard’s proton-exchange membrane 150 kW fuel cell. It has an energy storage subsystem, based on lithium-ion battery technology, enabling full hybrid operation with lower weight and improved performance.

CALSTART member BAE Systems integrated the vehicle and provides an improved electric motive drive subsystem with a power electronics suite that reduces weight, cost and noise. ElDorado National provides the advanced 40-foot bus chassis with numerous bus-design improvements aimed at reducing weight, noise and power consumption, including the use of composite materials, aerodynamic streamlining of the bus body, improved air conditioning ducting, insulating windows, disc brakes, reducedfriction tires and more.

While the one-year service trial concludes the project plan, the AFCB will continue in-service operations. The final step for the team is to release pertinent data so the transit industry SunLine’s American Fuel Cell Bus, Thousand Palms, CA can evaluate pilot procurement decisions. industry-cooperative research, development and demonstration program focused on commercializing fuel cell electric buses. The AFCB, overseen by CALSTART, is but one of the one of these matching fund projects.

The American Fuel Cell Bus (AFCB), shown above, is a Buy-America compliant, fuel cell-powered demonstration bus featuring major technology advances and innovations. This fuel cell electric bus development project leverages the technical expertise of the best in class fuel cell system partners and a bus maker in the United States, resulting in an extremely fuel efficient bus that may be able to realize a target cost of $1.5 million dollars

For more information, contact Fred Silver, fsilver@calstart.org.

Register for the ARPA-E Energy Innovation Summit, February 25-27. This event brings together leaders from academia, business and government to discuss cutting-edge energy issues and facilitate relationships to help move technologies into the marketplace. The Summit’s Technology Showcase displays over 250 energy technologies. Showcase applications and sponsorship opportunities are available. CALSTART members receive a $100 attendee discount. Use promo code AC001. Visit www.ARPAE-Summit.com.

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Mission Statement CALSTART is dedicated to the growth of a clean transportation technologies industry that will:    

Clean the air Secure the nation’s transportation energy future Create high-quality economic opportunities Reduce greenhouse gas emissions

Member benefits include:  Funding updates and announcements  Discounts to HTUF 2012  Access to complete member contact information  Standard or Full Service members receive free e-blast to our email list CALSTART Headquarters 48 S Chester Ave Pasadena, CA 91106 626-744-5600 calstart@calstart.org Know an industry colleague who would benefit from CALSTART membership? Contact Kimberly Taylor, Member Services Program Director, ktaylor@calstart.org or 626-622-6229.

California Policy CALSTART is co-sponsoring two bills – SB 11 (Pavley) and AB 8 (Perea and Skinner) that would extend through 2023 California’s incentive programs for clean vehicles, fuels, infrastructure, manufacturing and workforce training. The three major programs affected by these bills – AB 118, Carl Moyer and AB 923 – are set to expire by 2016. CALSTART is working closely with the authors’ offices and our co-sponsors, the California Air Pollution Control Officers Association and the American Lung Association in California, to build a strong support coalition.

In other funding news, revenues from California’s cap and trade program for greenhouse gas emissions provide a significant, highly sought after source for cleantech funding, and plans for investing these funds will be sorted out in 2013.

On the regulatory side, there is a fight shaping up around transportation fuels and climate policy. The oil industry and others are pushing for major changes to and/or delays in California’s Low Carbon Fuel Standard, and are also questioning whether transportation fuels should be part of California’s cap and trade program. Expect to see a contentious discussion about fuels policy, carbon pricing and how to reduce greenhouse gases from transportation.

Further complicating the policy landscape is the need to provide clean transportation technology education to the biggest new class of legislators since the mid 1960’s.

National Policy The 11th hour “fiscal cliff” deal averted disaster in the near term and dealt with some tax issues, including some tax credit extensions for alternative fuels; but the bigger decisions were simply kicked down the road for two months. Fiscal cliff and debt ceiling discussions continue to overshadow everything and nothing real is going to happen until these issues are handled. Some interesting discussions that would affect our industry could be rolled into the “grand bargaining,” potentially including additional tax provisions and even such seemingly far-out ideas as carbon or gas taxes. However, experience suggests we’ll likely see incremental, short-term approaches rather than bold, long-term solutions.

Speculation aside, there are a few things on the horizon that appear more certain. First, we expect increased focus on climate change, in part as a result of Hurricane Sandy. Second, long discussions around reauthorization of the Federal Highway Bill are expected to begin, as MAP-21, the bill passed late last summer, was only a two-year bill. The reauthorization effort will take time, especially if lawmakers want to address the funding shortfall caused by the fact that current gas taxes do not provide enough revenue for maintenance of existing infrastructure, much less expanded efforts. A federal gas tax increase may even be on the table.

A stricter federal air quality standard for ozone is also in the works. If this new standard goes into place, it is expected to nearly double the number of nonattainment areas for air quality and this will undoubtedly increase nationwide pressures to reduce transportation emissions.

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